The FIPB is threatening to hinder AT&T's plans to enter the Indian telecom sector through a joint venture with Mahindra Air Services. Reportedly, DoT needs more time to examine the details of the company because the latter intends to undertake a wide range of activities such as internet and long distance services.

The venture, 74 per cent owned by AT&T Global Network and 26 per cent by the Indian partner, will reportedly be called AT&T Global Network Services India, and AT&T will initially invest Rs 185 million in the business as its equity contribution. As per the company's new plans, it will have a service mark agreement with AT&T, Inc. of the US to use the AT&T brand. The Indian company will pay a royalty fee of $5,000 initially and 4 per cent of the annual sales subsequently.